Yes I can, but the advantage would be that if the SSH keys were stored in keychain, instead of in my ~/.ssh directory, I could use keychains ability to lock all of my passwords at once. One password to open keychain and it would unlock everything else. Then just set some good security on your actual keychain.

That's exactly what I meant, though apparently not what I said :) But yes, my dream is to have passwords for everything stored in keychain, and then just have one uber secure password for keychain. Good practices that lock keychain after 10 minutes idle, or system goes to sleep (like I have now). I use a hotpoint for my screensaver in the upper right corner which screensaver locks the machine when I walk away.

Right now it just stores the MD5 version of your password in your user defaults (a plist file in your Preferences directory). The keychain is a good idea, though; I've been working on having multiple usernames work in the login combobox, which each saving its password; I'll look into the keychain and if it doesn't seem like a much more difficult way to do things from a coding standpoint I'll use it.

The md5 is unfortunately enough information to post and stuff, so it's almost (but not quite, since you can't change the password and such with the hash) as bad as a plaintext. It's too bad the LJ guys didn't step outside stateless HTTP for a minute and work out some sort of challenge/response mechanism for establishing a session.